
PPP Loan Forgiveness Misconceptions
Many businesses find value in taking out a merchant cash advance. But, they may need to consider using a reverse consolidation to help pay it back.
Whether you’re just getting started or need a quick influx of cash on hand, you may be wondering: “What is a merchant cash advance?” A merchant cash advance is a more flexible and faster funding alternative to a business loan.
What makes a merchant cash advance the right choice for your business? Let’s find out!
We’ll explain all you need to know about business cash advances, the benefits of this funding option, and how you can apply for your own cash advance online.
A merchant cash advance (MCA) provides you with an upfront sum of money. In exchange, you give back a percentage of your future sales.
Two of the most popular methods of business funding are a merchant cash advance or a business loan.. Here’s how they differ:
Need cash fast? A merchant cash advance can provide you with it. But, that’s not the only benefit of choosing this funding option.
Here are a few more benefits that a MCA brings to the table:
New & Non-Traditional Businesses: MCAs are perfect for new and non-traditional business. Unlike banks that require a business to have been in operation for more than 2 years, MCAs are available for businesses that have just 6 months of revenue. They are also a great resource for online businesses, ecommerce, drop ship businesses, social media influencers that may not have physical premises.
For all their advantages, merchant cash advances have a number of drawbacks. As a responsible and informed business owner, it is important to be aware of these when applying for an MCA.
Here are a some of the drawbacks of this form of business financing:
A fast cash advance feels like a gift, but it’s important to remember that it’s not free money!
You will have to pay back the lump sum over time. However, the repayment term is set up to correlate with your monthly sales.
There are generally two ways to pay back your cash advance. These include:
While a merchant cash advance may not be the solution for all businesses, it is the best option for many. These are some of the most common reasons and types of businesses that seek a merchant cash advance:
It’s inevitable to have to fund your business. Yet, the way you choose to do so is up to your preferences and potential constraints. A merchant cash advance offers you with a flexible, fast, and easy way to get business capital whenever you need it!
Want to find out more about Uplyft Capital’s programs? Or, do you want to be matched with the best loan provider through our marketplace? No matter your preference, our team is here to help you get the funding you require as fast as possible.
Many businesses find value in taking out a merchant cash advance. But, they may need to consider using a reverse consolidation to help pay it back.